an indian company going global
TRANSCRIPT
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7/27/2019 An Indian Company Going Global
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An Indian Company Going Global
Submitted by:
Sanjoli Jain 43A
India being at the pinnacle of its growth prospect stands a tremendous opportunity
to enter the global economy. It is producing some of the world's fastest-growing,
most competitive companies. As the domestic market is maturing, the knowledge
and quality gap with respect to foreign companies is reducing. Now they are not just
low-cost alternatives, but fierce competitors in the global market.
India as a market has a lot of private players with their strength in skill-intensive
intermediate products and services. Going global is not just about acquiring foreign
companies, but its presence abroad in the form of subsidiaries, manufacturing and
servicing facilities, access to capital markets and technical abilities and most
importantly the value proposition.
One of the finest examples of such a rise is Mahindra and Mahindra, which was
started as a steel trading company in 1945 by two enterprising brothers named J.C.
Mahindra and K.C. Mahindra to become a US $16.2 billion corporation employing
more than 155,000 people around the world.
Taking advantage of potentially growing Indian economy, they identified the market
opportunities and diversified its businesses to other sectors such as oil drilling,
bearings, time-share resorts, instrumentation and transportation, particularly MUVs.
Vision:-
Indians are second to none in the world. The founders of our nations and of our
company passionately believed this. We will prove them right by believing in
ourselves and by making M&M Ltd. Known worldwide for the quality of its products
and services.
And it has succeeded in doing so. The business strategy adopted by M&M then was
to restructure it into 4 SBUs: Trade and financial services, IT services, Farm
equipment services and Automative. Each was headed by President- part of group
Management board. It adopted the policy of lateral recruitment in the company.
Business Strategy
Their business strategy was mainly carried out in two stages:
1. Market Selection
Industry filter Product/technology filter Price/earning filter Attractive but low volume market Price sensitive but high volume market High tech and high hp market
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This lead them to choose China over other options like USA, Australia and Africa.
2. Company selection
Product portfolio Product technology Market reach Quality systems and processes Scalability Openness in management Liabilities
It selected Jaingling Motor Company.
It initially entered the Chinese market with a thought after strategy, including the
following steps:
1. A team and tractors were sent to China from India to test the marketopportunity.
2. The team targeted a single province having large land holdings suitable forcompanys tractors.
3. Sold tractors at a price 20% higher than the rivals sending strong message ofSuperior Quality & Performance.
4. Tie up with a local partner.It initially faced a lot of challenges and had to struggle to sustain the market. It
implemented the concept of Reverse engineering. It partnered with local
universities for R&D and concentrated on global market despite a low domestic
market share. Internally, they follow three basic tenetsaccepting no limits,
thinking alternatively, and driving positive change in everything they do. These
brand pillars guide all their actions and business decisions from deciding whether or
not to enter a new field or planning a portfolio of services. There has been no
looking back since then. Now they are internationally connected through
partnerships and multinational workforce offering a wide range of services.
They entered South Africa by starting a 50:50 joint venture in 2004 and increasing
the stakes to 90% by 2009. They launched various products there and now they plan
to start local assembly there. To establish their market in the US, they maintainedstrong dealerships and offered low-rate retail financing and best services to the
consumers. The company with its exceptional skills to strategize in the international
market has come a long way, and shall continue to grow.